NELFUND dismisses claim of life imprisonment for student loan defaulters
The Nigerian Education Loan Fund (NELFUND) has dismissed as false a viral report claiming that students who fail to repay their education loans after graduation will face life imprisonment.
The agency described the report as fake news in a statement issued on Sunday, September 6, 2026, after a fabricated newspaper front page circulated online.
The false publication purportedly quoted President Bola Ahmed Tinubu as saying that students who failed to repay their loans after graduation would be sent to prison for life.
NELFUND rejected the claim and shared an image of the circulating publication marked “FAKE”, making it clear that the alleged announcement did not originate from the government.
The agency urged students and members of the public to disregard the report and rely on its verified communication channels for information concerning the student loan programme.
NELFUND was established under the Student Loans (Access to Higher Education) Act to provide financial support to eligible Nigerian students in tertiary institutions. The scheme covers institutional charges and, where applicable, upkeep allowances.
Under the repayment arrangements, beneficiaries do not immediately begin repaying their loans after graduation. Repayment is expected to commence two years after completion of the National Youth Service Corps programme or receipt of an exemption, provided the beneficiary is employed or earning an income.
For beneficiaries in paid employment, repayment is based on 10 per cent of their monthly salary, wages or other income, while self-employed beneficiaries are required to remit 10 per cent of their monthly profit.
Beneficiaries who remain unemployed and without income after the repayment period may apply for an extension in accordance with the conditions set by NELFUND.
The agency has previously warned against fabricated notices and misleading information concerning its student loan operations.
NELFUND said members of the public should verify information about loan applications, disbursements and repayment through its official platforms rather than relying on unverified reports circulating on social media.
